4d tax classification

Minnesota Statute 273.128

• 4d is the property tax classification for low-income rental properties.
• It is also known as Low-Income Rental Classification (LIRC).
• The purpose of the classification is to give building owners an incentive to keep rents affordable.

10-year agreement

See the 4d Affordable Housing Incentive Guide

See HousingLink.org

Minneapolis 4d incentive participants must follow these practices for 10 years.

• Rent enrolled units at or below 50% or 60% Area Median Income (AMI) rent limits based on:
  • Unit type, and
  • Enrollment date.
• Rent enrolled units to people with incomes at or below 50% or 60% AMI, based on:
  • Unit type, and
  • Enrollment date.
• Verify and report new renter incomes every year; existing renters are exempt.
• Cap rent increases for enrolled units at 6% per year for existing renters.
• Accept renter assistance, such as Section 8.
• List vacancies on the HousingLink website.

4d-eligible properties

See a list of current 4d participants

4d status is available to owners of low-income rental housing, including:

• Small (1-4 unit) buildings
• Large multifamily properties
• Single Room Occupancy (SRO) housing
• Rooming houses and group homes
• Buildings with owner occupied units, but only the rental units qualify for the 4d status

You cannot get the incentive if the property:

• Receives Low Income Housing Tax Credits (LIHTC)
• Participates in other programs qualifying for Low-Income Rental Classification (LIRC)

Licensing

• The property must have Tier 1 or Tier 2 rental license.
• It cannot have rental housing license revocations or outstanding housing orders.